Google Offers hit the web about a month ago in Portland, Oregon. The service is a competitor to sites like Groupon, LivingSocial, and Gilt City – to name a few. These types of services give users deals on products. Business Insider has published a story on why they think Google Offers will succeed, and also provides information about the service. Business Insider has posted three points outlining what Offers offers over its competitors.
“Vastly better payment terms than other deal providers, especially compared to Groupon”
The vastly better payment terms Business Insider is talking about is that Google will give merchants up to 80% of the voucher revenue in four days, and the other 20% will be shared within a 30-90 day range. Google also requires that the service or product be immediately available, while Groupon’s doesn’t.
“Google pays merchants for vouchers that are sold but not used; Groupon doesn’t”
Groupon will only pay merchants for vouchers that are used. Google wants to sweet talk merchants by giving them a split of the revenue for ever voucher sold, even if it’s used or not. This method seems a little more fair.
Lastly, it’s obvious that Google has a better channel to promote products. Don’t forget about Google’s widely used ad program (though a Google Spokesperson said this won’t be a factor), Android devices, the new Google wallet , and “Places pages”. Merchants will want a network that can market their product through more channels.
Business Insider also gives a fourth point: a Google salesperson in New York promised SEO benefits to a merchant. Now, what company wouldn’t like that? But.. a Google spokesperson had this to say: “Google Offers has no influence whatsoever on the ranking of Google search results.”
Google Offers is reportedly on its way to San Francisco and New York later this year. The lingering question is will this take off? Leave us your opinion in the comment section below.
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